12b fees are charged by some mutual funds to cover marketing and advertising expenses. The maximum fee is 1%.

Some mutual funds cover the fees associated with an individual investorís transactions and account by imposing fees and charges directly on the account holder at the time of the trades (or periodically with respect to account fees). These fees and charges are shown in the fee table, which is located near the front of a fundís investor prospectus, under the heading "Shareholder Fees."

Open and closed End Funds usually pay the regular and recurring, fund operating expenses out of fund assets vs. separate fund fees and charges on investors. (Keep in mind, however, that because these expenses are paid out of fund assets, investors are paying them indirectly.) These expenses are identified in the fee table in the fundís prospectus under the heading "Annual Fund Operating Expenses."